Question 1 Blades Lawn Equipment offers warranties on all their lawn mowers. They estimate warranty expense at 3.8% of sales. At the beginning of 2021, the estimated warranty payable account had a credit balance of $1,200. On May 15, 2021, Blades Lawn Equipment made a huge sale to Yolanda's Yardwork, a landscaping company starting up in Edmonton and Calgary, including 500 lawnmowers at $350 each. The customer (Yolanda's) started landscaping in the spring and summer and had claims against the warranties requiring Blades Lawn Equipment to do the following: June 18-replace 10 lawnmowers August 5-pay a repair company for lawnmower repairs costing $1,250.